North Dakota has become one of the most tax-friendly states in the country, thanks to its strong finances and billions of dollars in oil revenue. The state’s tax cuts and low tax burdens have made it an attractive place for residents and businesses alike.

Tax Revenue and Collections

According to the latest available U.S. Census Bureau data, North Dakota ranked second in the nation for state and local tax collections per capita in 2023, bringing in $9,834 per resident. However, much of this revenue comes from oil and gas production, rather than from residents’ paychecks. In fact, individual income taxes accounted for just 6.4% of total revenue in 2023, while corporate income taxes made up 4.2%.

This unique revenue mix allows North Dakota to generate billions of dollars for government services while placing a relatively small burden on residents and businesses. As Nicole Fox, senior policy analyst at the Tax Foundation, noted, states with more competitive tax structures and lower overall costs of living tend to experience net in-migration.

Comparison to Other States

In contrast to states like New York and California, which heavily rely on income taxes to fund government operations, North Dakota’s oil and gas production provides a significant source of revenue. This has given lawmakers the flexibility to cut taxes for residents while maintaining healthy state revenues. Treasury Secretary Scott Bessent recently highlighted the benefits of domestic energy production, stating that it not only strengthens the economy but also secures the nation.

Original reporting: Fox News (HLL/CB) — read the source article.